Juris Boiko

Senior Manager, Tax Reporting, Accounting and Strategy, PwC Latvia

The global trend towards digital solutions is becoming increasingly apparent in the financial and tax sectors. The introduction of e-invoicing, which was initially seen as a formal compliance requirement, is now becoming an important strategic step towards more efficient, transparent and sustainable business management. Like many other countries, Latvia has begun the gradual introduction of e-invoicing to strengthen fiscal discipline, reduce the shadow economy and modernise data exchange processes. These measures require companies to review their existing systems and introduce technological solutions that ensure compliance while adding real value to business processes. 

Key advantages of e-invoicing in business 

1. Ensuring regulatory compliance and mitigating tax risks 

The main objective of the national e-invoicing system is to improve the efficiency of monitoring by making tax information available and structured in real time. Latvia will introduce a decentralised e-invoicing exchange with the transfer of information to the State Revenue Service starting in 2026. The automation of invoicing and data transfer will significantly reduce the risk of errors and inconsistencies caused by the human factor. In addition, the use of structured data simplifies the tax audit and reduces possible discrepancies with the State Revenue Service. 

2. Streamlining accounting processes and reducing costs 

Traditional invoice processing involves considerable manual effort, which is inefficient, time-consuming and error-prone. Electronic invoices, especially when integrated into a company's accounting or ERP system, significantly speed up the invoice flow, reduce delays and eliminate the need for paper documents.. 

Economic advantages: 

• Elimination of printing and shipping fees; 
• Faster receipt of payments and improved liquidity; 
• Reduced processing time and labour costs; 
• Fewer errors and corrections. 

3. More accurate financial forecasting and strengthening controls 

The real-time data flow enables more accurate management of receivables and payables positions and improves cash flow planning. Companies that use electronic invoices together with modern financial analysis tools can recognise potential risks in good time and allocate resources more effectively, which contributes to long-term financial stability.. 

Action plan: How can companies prepare for the introduction of electronic invoices? 

1. Assessment of requirements: Determine whether and when your company will be required to implement an e-invoicing system in accordance with regulatory requirements. 

2. Audit of existing systems: Evaluate your invoicing and incoming invoice processing procedures, as well as your accounting systems, to identify necessary changes and potential integration opportunities. 

3. Selection of a technical solution: Choose the most suitable e-invoicing exchange model—whether by using the government-provided platform, e-invoice operators, or by developing integrations with partners’ ERP systems (e.g., using APIs). 

4. Employee training and internal communication: Ensure that all stakeholders understand the e-invoicing implementation process, its advantages, and compliance requirements. 

5. Compliance with PEPPOL standards: In Latvia, as in other parts of Europe, e-invoice exchange is organised following the PEPPOL standards, which ensure international compatibility and security. 

6. Financial support and incentives: Review available national support programs or EU co-financed initiatives aimed at promoting digitalisation.  

Conclusion: a future breakthrough through digitalisation 

E-invoicing is much more than a formal requirement – it represents a significant shift towards a more transparent, efficient and strategically managed business. The proactive implementation of these solutions not only ensures legal compliance but also provides a competitive advantage in the digital age. 

Companies that adapt in time and invest in e-invoicing solutions will gain a significant advantage, not only in the areas of tax and accounting, but also in overall financial management. On the other hand, procrastination can mean not only a delay in the adaptation process, but also lost opportunities for future growth.